Abstract
This article analyses the social costs of gambling sector in Lithuania. The aim of the research is to evaluate the change of gambling sector’s gambling gross revenue according to the established right to submit a request to self-exclude from gambling since May 1, 2017. The scientific problem of the research is how to define and evaluate gambling sector’s social costs. The analysis is conducted by evaluating dependency connection between gambling sector’s gambling gross revenue and gross domestic product taking into account the changing quantity of requests to self-exclude from gambling and current economic situation in Lithuania. The following methods are used for analysis: graphical analysis, paired correlation analysis and linear regression analysis. First of all, the conception of the social cost of gambling is being analysed in the article. Then using previously specified methods the relationship between gambling sector’s gambling gross revenue and gross domestic product in the country is evaluated. Using a linear regression equation, the model, showing how gambling gross revenue of gambling sector was expected to change in response to changes in the country's gross domestic product is obtained. According to gambling gross revenue for 2017-2019 the model reveals that gambling sector revenue, considering the change in gross domestic product, had a higher growth potential and the right to submit a request to self-exclude from gambling established in 2017 may have had a serious effect on slowing down the growth of gambling revenue.
Highlights
Gambling, like other activities with negative externalities, causes positive and negative effects to the economy
Noticeable, that economic social costs of gambling should be analysed considering the harm to society caused by gambling addiction and only negative technological externalities should be evaluated
There is no consent among scientists what negative externalities should be considered as the economic social costs caused by gambling
Summary
Like other activities with negative externalities, causes positive and negative effects to the economy. The analysis of the scientific literature revealed that no Lithuanian scientist paid attention to the analysis of the concept of social costs of gambling sector and did not analyse the impact of these costs on the economy to any extent. It can be stated that gambling in Lithuania has not received enough scientific attention and the impact of this sector’s social costs is not evaluated. The novelty of the research is that after analysing the concept of social costs, it is assessed whether one of the social costs - the establishment of the Register of Self-excluded people from gambling had - an impact on the income of the gambling sector. The tasks of the article are: 1) to present the conception of the social costs; 2) to analyse connection between gambling gross revenue change and social costs in Lithuania. Graphical analysis, paired correlation analysis and linear regression analysis methods are used to analyse and present the results of the research
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